HomeMy WebLinkAbout[05] Bond Sale, Monte Eastvold~~ ry
CITY OF ti'G ~f T.SF:I'H
MEETING DATE:
AGENDA ITEM:
SUBMITTED BY:
August 6, 2009
Council Agenda Item ~5
Bond Sale, Monte Eastvold
Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: In April 2009 Monte Eastvold presented the City with an opportunity to
save interest payments on the Public Project Revenue Bonds from 2003 (Maintenance Facility).
Legislative changes in bonding now allow Cities to issue General Obligation Capital Improvement Bonds
for facilities that are part of the City's Capital Improvement Plan. Therefore, in June 2009 the City
Council conducted a public hearing on the Capital Improvement Plan for the Maintenance Facility and
adopted the plan.
BACKGROUND INFORMATION: Since May, Eastvold has been watching the market rates to see when it
would make sense to issue the bonds. Based on the rate of 7/29, the City would see a reduction in
future debt payments of approximately $ 23,367.
Based on the Market and current trends, bond purchasers are looking for rated bonds. Therefore, the
City went through the rating process on August 3, 2009. Since we rated a bond issue this year, the cost
was reduced to approximately $ 3,000. With this additional cost the City will still see a savings of $
20,000. We should have the bond rating on Tuesday or Wednesday.
Public Project Revenue Bonds are tied to the EDA and the City in turn leases the facility from the EDA.
The EDA will have to terminate the lease at their next meeting. Eastvold has provided the required
material for such.
BUDGET/FISCAL IMPACT: Reduction in future debt payments of approximately $ 20,000.
ATTACHMENTS: Resolution 2009-17 Accepting the proposal and award of the
sale of the $ 500,000 GO Capital Improvement Plan Refunding Bonds, Series 20096.
REQUESTED COUNCIL ACTION: Authorize execution of Resolution 2009-17Accepting the proposal and
award of the sale of the $ 500,000 GO Capital Improvement Plan Refunding Bonds, Series 20096
Resolution 2009-017
Resolution to accept proposal and award the sale of the
$500,000 GO Capital Improvement Plan Refunding Bonds, Series 20096
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF ST. JOSEPH, MINNESOTA
HELD: August 6, 2009
Pursuant to due call, a regular meeting of the City Council of the City of St. Joseph,
Minnesota, was duly held at the City Hall on August 6, 2009, at 7:00 P.M., for the purpose in
part of considering proposals and awarding the sale of $500,000 General Obligation Capital
Improvement Plan Refunding Bonds, Series 2009B.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION NO. 09-
RESOLUTION ACCEPTING PROPOSAL ON THE SALE OF $500,000 GENERAL
OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2009B,
PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX
FOR THE PAYMENT THEREOF
A. WHEREAS, the City of St. Joseph, Minnesota (the "City"), after publication of
the notice of public hearing, on June 4, 2009, held a public hearing on the proposed issuance of
General Obligation Capital Improvement Plan Refunding Bonds pursuant to Minnesota Statutes,
Section 475.521, Subd. 2 and on the proposed capital improvement plan, and adopted the 2009-
2013 Capital Improvement Plan for the City (the "Plan") in accordance with the provisions of
Minnesota Statutes, Section 475.521, Subd. 3, which provided, in part, for the issuance of bonds
to acquire the public works facility (the "Facility") which the City is leasing from the Economic
Development Authority of the City of St. Joseph, Minnesota (the "EDA") and refund the
outstanding EDA's Public Project Revenue Bonds of 2003 (City of St. Joseph, Minnesota Lease
with Option to Purchase Project) dated April 1, 2003 (the "Prior Bonds") which financed the
Facility; and
B. WHEREAS, no petition signed by voters equal to five percent of the votes cast in
the City in the last general election requesting a vote on the issuance of the capital improvement
plan bonds has been filed with the City Administrator-Clerk within thirty days after the public
hearing on the issuance of the Bonds; and
C. WHEREAS, the City Council has heretofore determined that it is necessary and
expedient to issue $500,000 General Obligation Capital Improvement Plan Refunding Bonds,
Series 2009B (the "Bonds" or individually, a "Bond") pursuant to Minnesota Statutes, Section
475.521 and Chapter 475 to provide funds to acquire the Facility pursuant to a current refunding
of the Prior Bonds; and
D. WHEREAS, the City has heretofore determined, in accordance with Minnesota
Statutes, Section 475.521, Subd. 4, that the maximum amount of principal and interest to become
due in any year on the Bonds, and any other outstanding bonds issued under Minnesota Statutes,
Section 475.521, is less than 0.16 percent of the taxable market value of property of the City; and
E. WHEREAS, $480,000 aggregate principal amount of the Prior Bonds which
mature on and after December 1, 2010 (the "Refunded Bonds"), are callable on December 1,
2009 (the "Call Date"), as provided in the Revenue Bond Resolution adopted on Apri122, 2003
(the "Prior Resolution"), and the refunding of the callable Prior Bonds is consistent with
covenants made with the holders thereof, and is necessary and desirable for the reduction of debt
service cost to the City; and
F. WHEREAS, no other obligations have been sold pursuant to a private sale within
the last twelve calendar months of the date hereof which when combined with this issue would
exceed the $1,200,000 limitation on negotiated sales as required by Minnesota Statutes, Section
475.60, Subdivision 2(2); and
G. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereafter provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph,
Minnesota, as follows:
1. Acceptance of Proposal. The offer of Northland Securities, Inc. (the "Purchaser"),
to purchase the Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$ ,plus interest accrued to settlement, is hereby accepted.
2. Bond Terms.
(a) Original Issue Date; Denominations; Maturities;. Combining Maturities; and Term
Bond Option. The Bonds shall be dated September 1, 2009, as the date of original issue and shall
be issued forthwith on or after such date in fully registered form. The Bonds shall be numbered
from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a
single maturity (the "Authorized Denominations"). The Bonds shall mature on December 1 in
the years and amounts as follows:
Year Amount
2010
2011
2012
2013
2014
2014
2015
2016
2017
2018
As may be requested by the Purchaser, one or more term Bonds maybe issued having
mandatory sinking fund redemption and final maturity amounts conforming to the forgoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entry Onl~ystem. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry
form only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered certificate for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Registrar (as hereinafter defined) in the name of CEDE & CO.,
as the nominee (it or any nominee of the existing or a successor Depository, the
"Nominee").
(iii) With respect to the Bonds neither the City nor the Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial institution
for which the Depository holds Bonds as securities depository (the "Participant") or the
person for which a Participant holds an interest in the Bonds shown on the books and
records of the Participant (the "Beneficial Owner"). Without limiting the immediately
preceding sentence, neither the City, nor the Registrar, shall have any such responsibility
or obligation with respect to (A) the accuracy of the records of the Depository, the
Nominee or any Participant with respect to any ownership interest in the Bonds, or (B)
the delivery to any Participant, any Owner or any other person, other than the Depository,
of any notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than the
Depository, of any amount with respect to the principal of or premium, if any, or interest
on the Bonds, or (D) the consent given or other action taken by the Depository as the
Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or
consent of any Holder under this Resolution, the City may, however, rely upon an
omnibus proxy under which the Depository assigns its consenting or voting rights to
certain Participants to whose accounts the Bonds are credited on the record date
identified in a listing attached to the omnibus proxy.
(iv) The City and the Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and premium,
if any, and interest on the Bonds, for the purpose of giving notices of redemption and
other matters with respect to the Bonds, for the purpose of obtaining any consent or other
action to be taken by Holders for the purpose of registering transfers with respect to such
Bonds, and for all purpose whatsoever. The Registrar, as paying agent hereunder, shall
pay all principal of and premium, if any, and interest on the Bonds only to or upon the
Holder of the Holders of the Bonds as shown on the register, and all such payments shall
be valid and effective to fully satisfy and discharge the City's obligations with respect to
the principal of and premium, if any, and interest on the Bonds to the extent of the sum or
sums so paid.
(v) Upon delivery by the Depository to the Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10, references to the
Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the Registrar
or City, as the case may be, to the Depository as provided in the Letter of Representations
to the Depository required by the Depository as a condition to its acting as book-entry
Depository for the Bonds (said Letter of Representations, together with any replacement
thereof or amendment or substitute thereto, including any standard procedures or policies
referenced therein or applicable thereto respecting the procedures and other matters
relating to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in book-
entry form shall be limited in principal amount to Authorized Denominations and shall be
effected by procedures by the Depository with the Participants for recording and
transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Registrar with respect to any consent
or other action to be taken by Holders, the Depository shall consider the date of receipt of
notice requesting such consent or other action as the record date for such consent or other
action; provided, that the City or the Registrar may establish a special record date for
such consent or other action. The City or the Registrar shall, to the extent possible, give
the Depository notice of such special record date not less than 15 calendar days in
advance of such special record date to the extent possible.
(ix) Any successor Registrar in its written acceptance of its duties under this
Resolution and any paying agency registrar agreement, shall agree to take any actions
necessary from time to time to comply with the requirements of the Letter of
Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5,
make a notation of the reduction in principal amount on the panel provided on the Bond
stating the amount so redeemed.
(c) Termination of Book-Entr~nly System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bonds if it determines that the Depository
is no longer able to carry out its functions as securities depository or the continuation of
the system of book-entry transfers through the Depository is not in the best interests of
the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository can be found which, in the
opinion of the City, is willing and able to assume the functions of the Depository
hereunder upon reasonable or customary terms, or if the City determines that it is in the
best interests of the City or the Beneficial Owners of the Bonds that the Beneficial
Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be
registered as being registered in the bond register in the name of the Nominee, but may
be registered in whatever name or names the Holder of the Bonds shall designate at that
time, in accordance with paragraph 12. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 12, the Bonds
will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 12.
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part hereof. If and to the extent any such provisions
are inconsistent with the other provisions of this resolution, the provisions in the Letter of
Representations shall control.
3. Purpose; Refunding Findings. The Bonds shall provide funds to acquire the
Facility as set forth in the Plan (the "Project"), most specifically, a current refunding of the
Refunded Bonds (the "Refunding"). It is hereby found and determined that the Refunding is
pursuant to Minnesota Statutes, Section 475.67 and shall result in a reduction of debt service cost
to the City.
4. Interest The Bonds shall bear interest payable semiannually on June 1 and
December 1 of each year (each, an "Interest Payment Date"), commencing June 1, 2010,
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate
2010
2011
2012
2013
2014
2014
2015
2016
2017
2018
5. Redemption. All Bonds maturing on December 1, 2017, and thereafter, shall be
subject to redemption and prepayment at the option of the City on December 1, 2016, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the City shall determine the maturities
and the principal amounts within each maturity to be prepaid, and if only part of the Bonds
having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall
be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be
due and payable on the redemption date, and interest thereon shall cease to accrue from and after
the redemption date. Mailed notice of redemption shall be given to the paying agent and to each
affected registered holder of the Bonds at least thirty days prior to the date set for redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and the Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute and the Bond Registrar shall authenticate and
deliver to the Holder of the Bond, without service charge, a new Bond or Bonds of the same .
series having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. Northland Trust Services, Inc., in Minneapolis, Minnesota, is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
STEARNS COUNTY
CITY OF ST. JOSEPH
R- ~.
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN
REFUNDING BOND, SERIES 2009B
Interest Rate MaturitYDate Date of Original Issue CUSIP
December 1, _ September I, 2009
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
The City of St. Joseph, Stearns County, Minnesota (the "Issuer"), certifies that it is
indebted and for value received promises to pay to the registered owner specified above, or
registered assigns, in the manner hereinafter set forth, the principal amount specified above, on
the maturity date specified above, without option of prior payment, and to pay interest thereon
semiannually on June 1 and December 1 of each year (each, an "Interest Payment Date"),
commencing June 1, 2010, at the rate per annum specified above (calculated on the basis of a
360-day year of twelve 30-day months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest Payment Date to which interest has
been paid or, if no interest has been paid, from the date of original issue hereof. The principal of
and premium, if any, on this Bond are payable upon presentation and surrender hereof at the
principal office of Northland Trust Services, Inc., in Minneapolis, Minnesota (the "Bond
Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer.
Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the
person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration
books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the
close of business on the fifteenth day of the calendar month next preceding such Interest
Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be
payable to the person who is the Holder hereof as of the Regular Record Date, and shall be
payable to the person who is the Holder hereof at the close of business on a date (the "Special
Record Date") fixed by the Bond Registrar whenever money becomes available for payment of
the defaulted interest Notice of the Special Record Date shall be given to Bondholders not less
than ten days prior to the Special Record Date. The principal of and premium, if any, and
interest on this Bond are payable in lawful money of the United States of America. So long as
this Bond is registered in the name of the Depository or its Nominee as provided in the
Resolution hereinafter described, and as those terms are defined therein, payment of principal of,
premium, if any, and interest on this Bond and notice with respect thereto shall be made as
provided in the Letter of Representations, as defined in the Resolution, and surrender of this
Bond shall not be required for payment of the redemption price upon a partial redemption of this
Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may
only be registered in the name of the Depository or its Nominee.
RedemRtion. All Bonds maturing on December 1, 2017, and thereafter, shall be subject
to redemption and prepayment at the option of the City on December 1, 2016, and on any date
thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the
Bonds subject to prepayment. If redemption is in part, the City shall determine the maturities
and the principal amounts within each maturity to be prepaid, and if only part of the Bonds
having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall
be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be
due and payable on the redemption date, and interest thereon shall cease to accrue from and after
the redemption date. Mailed notice of redemption shall be given to the paying agent and to each
affected registered holder of the Bonds at least thirty days prior to the date set for redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and the Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute and the Bond Registrar shall authenticate and
deliver to the Holder of the Bond, .without service charge, a new Bond or Bonds of the same
series having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
Issuance; Purpose; General Obli ation. This Bond is one of an issue in the total principal
amount of $500,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate and denomination, issued pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on
August 6, 2009 (the "Resolution"), for the purpose of providing funds to finance the acquisition
of Facility described in the Issuer's Capital Improvement Plan pursuant to a current refunding of
the outstanding Public Project Revenue Bonds of 2003 (City of St. Joseph, Minnesota Lease with
Option to Purchase Project) of the Economic Development Authority of the City of St. Joseph,
Minnesota, dated April 1, 2003, pursuant to and in full conformity with the Constitution and laws
of the State of Minnesota, including Minnesota Statutes, Chapter 475. This Bond is payable out
of the General Obligation Capital Improvement Plan Refunding Bonds, Series 2009B Fund of
the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for
the prompt and full payment of its principal, premium, if any, and interest when the same
become due, the full faith and credit and taxing powers of the Issuer have been and are hereby
irrevocably pledged.
Denominations• Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligations. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of St. Joseph, Minnesota, by its City Council has
caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and the
Administrator-Clerk, the seal of the Issuer having been intentionally omitted as permitted by law.
Date of Registration:
BOND REGISTRAR'S CERTIFICATE
OF AUTHENTICATION
This Bond is one of the Bonds described
in the Resolution mentioned within.
NORTHLAND TRUST
SERVICES, INC.
St. Paul, Minnesota,
Bond Registrar
Registrable by: NORTHLAND TRUST
SERVICES, INC.
Payable at: NORTHLAND TRUST
SERVICES, INC.
CITY OF ST. JOSEPH,
STEARNS COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Administrator-Clerk
By:
Authorized Signature
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - as custodian for
(Gust)
under the
(State)
(Minor)
Uniform Transfers to Minors Act
Additional abbreviations may also be used though not in the above list
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto the
within Bond and does hereby irrevocably constitute and appoint attorney to transfer
the Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the
face of the within Bond in every particular, without
alteration or any change whatever.
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners if the Bond is held by joint account.)
8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and Administrator-Clerk and be sealed with the seal of
the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the
corporate seal has been omitted. In the event of disability or resignation or other absence of
either officer, the Bonds may be signed by the manual or facsimile signature of the officer who
may act on behalf of the absent or disabled officer. In case either officer whose signature or
facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
such Bond, substantially in the form hereinabove set forth, shall have been duly executed by the
Bond Registrar. The Bond Registrar shall authenticate the signatures of officers of the City on
each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the
date of registration in the space provided the date on which the Bond is authenticated, except that
for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as
a date of registration the date of original iss/ue of September 1, 2009. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9 with respect to authentication) of, and deliver, in the
name of the designated transferee or transferees, one or more new Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount, having the same stated
maturity and interest rate, as requested by the transferor; provided, however, that no Bond may
be registered in blank or in the name of "bearer" or similar designation.
At the option of the Holder, Bonds maybe exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates.
11. Ri hg is Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12 with respect to interest payment and record date) on, such Bond and
for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the
City nor the Bond Registrar shall be affected by notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15. Fund and Accounts. There is hereby created a special fund to be designated the
"General Obligation Capital Improvement Plan Refunding Bonds, Series 2009B Fund" (the
"Fund") to be administered and maintained by the Administrator-Clerk as a bookkeeping account
separate and apart from all other funds maintained in the official financial records of the City.
The Fund shall be maintained in the manner herein specified until all of the Bonds and the
interest thereon have been fully paid. There shall be maintained in the Fund the following
separate accounts, to be designated the "Payment Account" and "Debt Service Account",
respectively.
(a) Payment Account. The proceeds of the Bonds, less accrued interest and any
unused discount, shall be deposited in the Payment Account. On or prior to the Call Date, the
Administrator-Clerk shall transfer $ of the proceeds of the Bonds from the
Payment Account to the paying agent for the Refunded Bonds, which sum is sufficient, together
with other funds on deposit in debt service fund for the Refunded Bonds, to pay the principal and
interest due on the Refunded Bonds on the Call Date, including the principal of the Refunded
Bonds called for redemption on that date. The remainder of the monies in the Payment Account
shall be used to pay the costs of issuance of the Bonds. Any monies remaining in the Payment
Account after payment of all costs of issuance and payment of the Refunded Bonds shall be
transferred to the Debt Service Account.
(b) Debt Service Account. There are hereby irrevocably appropriated and pledged to,
and there shall be credited to, the Debt Service Account: (i) all accrued interest received upon
delivery of the Bonds; (ii) all funds paid for the Bonds in excess of the minimum bid; (iii) any
collections of all taxes herein or hereafter levied for the payment of the Bonds and interest
thereon; (iv) on and after the Call Date, any unexpended moneys in the 2003 Public Project
Revenue Bonds Bond Fund created by the Prior Resolution; and (v) all investment earnings on
funds held in the Debt Service Account; and (vi) any and all other moneys which are properly
available and are appropriated by the governing body of the City to the Debt Service Account.
The Debt Service Account shall be used solely to pay the principal and interest and any
premiums for redemption of the Bonds and any other general obligation bonds of the City
hereafter issued by the City and made payable from said account as provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service
Account (or any other City account which will be used to pay principal or interest to become due
on the bonds payable therefrom) in excess of amounts which under then applicable federal
arbitrage regulations may be invested without regard to yield shall not be invested at a yield in
excess of the applicable yield restrictions imposed by said arbitrage regulations on such
investments after taking into account any applicable "temporary'periods" or "minor portion"
made available under the federal arbitrage regulations. Money in the Fund shall not be invested
in obligations or deposits issued by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such investment would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended (the "Code").
16. Tax Levv: Covera e Test To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of
other general property taxes in the City for the years and in the amounts as follows:
Year of Tax Levy Year of Tax Collectidn Amount
2009-2018 2010-2019 $
The tax levies are such that if collected in full they, together with other revenues herein
pledged for the payment of the Bonds, will produce at least five percent in excess of the amount
needed to meet when due the principal and interest payments on the Bonds. The tax levies shall
be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City
reserves the right and power to reduce the levies in the manner and to the extent permitted by
Minnesota Statutes, Section 475.61, Subdivision 3.
17. General Obligation Pledge. For the prompt and full payment of the principal and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds and
any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds
of the City which are available for such purpose, and such other funds maybe reimbursed with
or without interest from the Debt Service Account when a sufficient balance is available therein.
18. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered Holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also at any time discharge its obligations with respect to any Bonds,
subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a suitable banking institution qualified by law as an
escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such rates and maturing on such
dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to
become due thereon to maturity or, if notice of redemption as herein required has been duly
provided for, to such earlier redemption date.
19. Certificate of Registration. A certified copy of this resolution shall be filed in the
office of the County Auditor of Stearns County, Minnesota, together with such other information
as the County Auditor shall require and the County Auditor shall issue a certificate that the
Bonds have been entered in the County Auditor's Bond Register and that the tax levy required by
law has been filed and levied.
20. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
21. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit it to be
used, or to enter into any deferred payment arrangements for the cost of the Project, in such a
manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103
and 141 through 150 of the Code.
22. Tax-Exempt Status of the Bonds• Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation:
(a) requirements relating to temporary periods for investments;
(b) limitations on amounts invested at a yield greater than the yield on the Bonds; and
(c) the rebate of excess investment earnings to the United States if the Bonds
(together with other obligations reasonably expected to be issued and outstanding at one time in
this calendar year) exceed the small issuer exception amount of $5,000,000.
For purposes of qualifying for the exception to the federal arbitrage rebate requirements
for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and
declares that:
(d) the Bonds are issued by a governmental unit with general taxing powers;
(e) no Bond is a private activity bond;
(f) ninety-five percent or more of the net proceeds of the Bonds are to be used for
local governmental activities of the City (or of a governmental unit the jurisdiction of which is
entirely within the jurisdiction of the City); and
(g) the aggregate face amount of all tax exempt bonds (other than private activity
bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds are issued is not reasonably
expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code.
23. Designation of Qualified Tax-Exempt Obli atg ions. In order to qualify the Bonds
as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Code, the
City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2009 will
not exceed $30,000,000;
(e) not more than $30,000,000 of obligations issued by the City during this calendar
year 2009 have been designated for purposes of Section 265(b)(3) of the Code;
(f) the aggregate face amount of the Bonds does not exceed $30,000,000; and
Furthermore:
(g) each of the Refunded Bonds was designated as a "qualified tax exempt
obligation" for purposes of Section 265(b)(3) of the Code;
(h) the aggregate face amount of the Bonds does not exceed $30,000,000;
(i) the average maturity of the Bonds does not exceed the remaining average maturity
of the Refunded Bonds;
(j) no part of the Bonds has a maturity date which is later than the date which is
thirty years after the date the Refunded Bonds were issued; and
(k) the Bonds are issued to refund, and not to "advance refund" the Prior Bonds
within the meaning of Section 149(d)(5) of the Code, and shall not be taken into account under
the $30,000,000 issuance limit to the extent the Bonds do not exceed the outstanding amount of
the Prior Bonds.
The City shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
24. Termination of Lease. The City hereby elects to exercise its option under Section
10.4 of the Lease with Option to Purchase Agreement between the City and the EDA, dated as of
April 1, 2003 (the "Lease") to prepay its Rental Payments (as defined in the Lease) through the
Call Date and deposit funds sufficient to refund the outstanding Prior Bonds on the Call Date.
As provided in the Lease, the City hereby determines and declares that upon the issuance of the
Bonds, the Lease shall be terminated and the EDA shall have no further right, title and/or interest
in and to the Facility.
25. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
26. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
The motion for the adoption of the foregoing resolution was duly seconded by member
and, after a full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
whereupon the resolution was declared duly passed and adopted.
STATE OF MINNESOTA
CITY OF ST. JOSEPH
I, the undersigned, being the duly qualified and acting Administrator-Clerk of the City of
St. Joseph, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my office, and that the same is a full, true
and complete transcript of the minutes of a meeting of the City Council, duly called and held on
the date therein indicated, insofar as the minutes relate to considering proposals and awarding the
sale of $500,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2009B.
WITNESS my hand on August 6, 2009.
Administrator-Clerk
Final
City of Saint Joseph, Minnesota
G.O. Capital Improvement Plan Refunding Bonds, Series 20096
2003
Refunding Summary
Dated 09/01/2009 I Delivered 09103/2009
Sources Of Funds
Par Amount of Bonds $495,000.00
Reoffering Premium 3,728.85
Accrued Interest from 09/01/2009 to 09/03/2009 68.94
Total Sources $498'797'79
Uses Of Funds
Deposit to Current Refunding Fund 479,706.94
Costs of Issuance 18,282.50
Rounding Amount 739.41
Deposit to Debt Service Fund 68.94
Total Uses $498'797'79
Flow of Funds Detail
State and Local Government Series (BEGS) rates #or
Date of OMP Candidates
Current Refunding Escrow Solution Method Net Funded
Total Cost of Investments $479,706.94
Interest Earnings @ 0.250% 293.06
Total Draws $480,000.00
Issues Refunded And Call Dates
03o1d 12/01 /2009
PV Analysis Summary (Net to Net)
Net PV Cashflow Savings @ 2.738%(Bond Yield) 21,094.57
Accrued Interest Credit to Debt Service Fund 68.94
Contingency or Rounding Amount 739.41
Net Present Value Benefit $21,902.92
Net PV Benefit / $480,000 Refunded Principal 4.563%
Net PV Benefit / $495,000 Refunding Principal 4.425%
Bond Statistics
Average Life 5.391 Years
Average Coupon 2.9136300%
Net Interest Cost (NIC) 2.7739073%
Bond Yield for Arbitrage Purposes 2.7384917%
True Interest Cost (TIC) 2.7384917%
All Inclusive Cost (AIC) 3.5021312%
03reT I SINGLE PURPOSE i 8/ 6/2009 11:15 PM
Northland Securities
Public Finance Page 1
Final
City of Saint Joseph, Minnesota
G.O. Capital Improvement Plan Refunding Bo nds, Series 2009B
2003
Debt Service Comparison
Date Total P+I Existing D/S Net New D/S Old Net D1S Savings
12/01/2009 - 51,391.25 50,582.90 51,391.25 808.35
12/01/2010 65,512.50 - ~ 65,512.50 66,342.50 830.00
12/01/2011 61,860.00 - 61,860.00 64,655.00 2,795.00
12/01/2012 66,185.00 - 66,185.00 67,855.00 1,670.00
12101/2013 65,250.00 - 65,250.00 65,805.00 555.00
12/01/2014. 64,150.00 - 64,150.00 68,655.00 4,505.00
12/01/2015 62,500.00 - 62,500.00 66,180.00 3,680.00
12/01/2016 60,850.00 - 60,850.00 63,650.00 2,800.00
12/01/2017 64,200.00 - 64,200.00 66,065.00 1,865.00
12/01/2018 62,250.00 - 62,250.00 68,185.00 5,935.00
Total $572,757.50 $51,391.25 $623,340.40 $648,783.75 $25,443.35
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings ..................... 21,094.57
Net PV Cashflow Savings @ 2.738%(Bond Yield)..... 21,094.57
Accrued Interest Credit to Debt Service Fund...... 68.94
Contingency or Rounding Amount .................... 739.41
Net Present Value Benefit $21,902.92
Net PV Benefit / $519,892.36 PV Refunded Debt Service 4.213%
Net PV Benefit / $480,000 Refunded Principal... 4.563%
Net PV Benefit! $495,000 Refunding Principal.. 4.425%
Refunding Bond Information
Refunding Dated Date 9/01/2009
Refunding Delivery Date 9/03/2009
03ref i SINGLE PURPOSE i 8/ 6/2009 i 1:15 PM
Northland Securities
Public Finance Page 2
Final
City of Saint Joseph, Minnesota
G.O. Capital Improvement Plan Refunding Bo nds, Series 20098
2003
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
09/03/2009 - - - - -
06/01/2010 - - 9,307.50 9,307.50 -
12/01/2010 50,000.00 1.100% 6,205.00 56,205.00 65,512.50
06/01/2011 - - 5,930.00 5,930.00 -
12/01/2011 50,000.00 1.350% 5,930.00 55,930.00 61,860.00
06/01/2012 - - 5,592.50 5,592.50 -
12/01/2012 55,000.00 1.700% 5,592.50 60,592.50 66,185.00
06/01 /2013 - - 5,125.00 5,125.00 -
12/01/2013 55,000.00 2.000% 5,125.00 60,125.00 65,250.00
06/01/2014 - - 4,575.00 4,575.00 -
12/01/2014 55,000.00 3.000% 4,575.00 59,575.00 64,150.00
06/01!2015 3,750.00 3,750.00 -
12/01/2015 55,000.00 3.000% 3,750.00 58,750.00 62,500.00
06/01/2016 2,925.00 2,925.00 -
12/01/2016 55,000.00 3.000% 2,925.00 57,925.00 60,850.00
06/01 /2017 2,100.00 2,100.00 -
12/01/2017 60,000.00 3.250% 2,100.00 62,100.00 64,200.00
06/01 /2018 - - 1,125.00 1,125.00 -
12/01 /2018 60,000.00 3.750% 1,125.00 61,125.00 62,250.00
Total $495,000.00 - $77,757.50 $572,757.50 -
Dated 9/01 /2009
Delivery Date 9/03/2009
First Coupon Date 6/01/2010
First available call date
Call Price 100.0000000%
Accrued Interest from 09/01/2009 to 09/0312009 68.94
Bond Year Dollars $2,668.75
Average Life 5.391 Years
Average Coupon 2.9136300%
Net Interest Cost (NIC) 2.7739073%
True Interest Cost (TIC) 2.7384917%
Bond Yield for Arbitrage Purposes 2.7384917%
Net Interest Cost 2.7482176%
Weighted Average Maturity 5.396. Years
03ref I SINGLE PURPOSE 1 8/ 6/2009 1 1:15 PM
Northland Securities
Public Finance Page 3
Final
City of Saint Joseph, Minnes ota
Lease Revenue Bonds of 2003
Debt Service To Maturity And To Call
Refunded
Date Bonds DIS To Call Principal Coupon Interest Refunded DIS Fiscal Total
09/03/2009 - - - - - - -
12/01/2009 480,000.00 480,000.00 - 3.600% - -
06/01/2010 - - - - 10,671.25 10,671.25 -
12/01/2010 - - 45,000.00 3.750% 10,671.25 55,671.25 66,342.50
06/01/2011 - - - - 9,827.50 9,827.50 -
12/01/2011 - - 45,000.00 4.000% 9,827.50 54,827.50 64,655.00
06/01/2012 - - - - 8,927.50 8,927.50 -
12/O1/2012 - - 50,000.00 4.100% 8,927.50 58,927.50 67,855.00
06/01/2013 - - - - 7,902.50. 7,902.50 -
12/O1/2013 - - 50,000.00 4.300% 7,902.50 57,902.50 65,805.00
06/01/2014 - - - 6,827.50 6,827.50 -
1210112014 - - 55,000.00 4.500% 6,827.50 61,827.50 68,655.00
06/01/2015 - - 5,590.00 5,590.00 -
12/01/2015 - - 55,000.00 4.600% 5,590.00 60,590.00 66,180.00
06/01/2016 - - - - 4,325.00 4,325.00 -
12/01/2016 - - 55,000.00 4.700% 4,325.00 59,325.00 63,650.00
06/01/2017 - - - - 3,032.50 3,032.50 -
12/01/2017 - - 60,000.00 4.800% 3,032.50 63,032.50 66,065.00
06/01/2018 - - - - 1,592.50 1,592.50 -
12/01/2018 - - 65,000.00 4.900% 1,592.50 66,592.50 68,185.00
Total $480,000.00 $480,000.00 $480,000.00 - $117,392.50 $597,392.50 -
Yield Statistics
Average Life 5.542 Years
Weighted Average Maturity (Par Basis) 5.536 Years
Average Coupon 4.4132519%
Refundin Bond Information
Refunding Dated Date 9/01/2009
Refunding Delivery Date 9/03/2009
03o1d ~ SINGLE PURPOSE 18! 6/2009 i 1:15 PM
Northland Securities
Public Finance Page a
Final
City of Saint Joseph, Minnesota
G.O. Capital Improvement Plan Refunding Bonds, Series 20096
2003
Detail Costs Of Issuance
Dated 0910112009 I Delivered 0910312009
COSTS OF ISSUANCE DETAIL
Bond Counsel $3,000.00
Rating Agency Fee $3,000.00
Miscellaneous $100.00
Registrar /Paying Agent $1,045.00
Underwriter Fee $11,137.50
TOTAL $18,282.50
03ret ~ SINGLE PURPOSE 18/ 6/2009 ~ 1:15 PM
Northland Securities
Public Finance Page 5
EXTRACT OF MINUTES OF A MEETING ~ 0 `~
OF THE CITY COUNCIL ~p~c1
CITY OF ST. JOSEPH, MINNESOTA
HELD: August 6, 2009
Pursuant to due call, a regular meeting of the City Council of the City of St. Joseph,
Minnesota, was duly held at the City Hall on August 6, 2009, at 7:00 P.M., for the purpose in
part of considering proposals and awarding the sale of $500,000 General Obligation Capital
Improvement Plan Refunding Bonds, Series 2009B.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION NO. 09-
RESOLUTION ACCEPTING PROPOSAL ON THE SALE OF $~0 GENERAL
OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2009B,
PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX
FOR THE PAYMENT THEREOF
A. WHEREAS, the City of St. Joseph, Minnesota (the "City"), after publication of
the notice of public hearing, on June 4, 2009, held a public hearing on the proposed issuance of
General Obligation Capital Iinproveinent Plan Refunding Bonds pursuant to Minnesota Statutes,
Section 475.521, Subd. 2 and on the proposed capital improvement plan, and adopted the 2009-
2013 Capital Improvement Plan for the City (the "Plan") in accordance with the provisions of
Minnesota Statutes, Section 475.521, Subd. 3, which provided, in part, for the issuance of bonds
to acquire the public works facility (the "Facility") which the City is leasing from the Economic
Development Authority of the City of St. Joseph, Minnesota (the "EDA") and refund the
outstanding EDA's Public Project Revenue Bonds of 2003 (City of St. Joseph, Minnesota Lease
with Option to Purchase Project) dated April 1, 2003 (the "Prior Bonds") which financed the
Facility; and
B. WHEREAS, no petition signed by voters equal to five percent of the votes cast in
the City in the last general election requesting a vote on the issuance of the capital improvement
plan bonds has been filed with the City Administrator-Clerk within thirty days after the public
hearing on the issuance of the Bonds; and
C. WHEREAS, the City Council has heretofore determined that it is necessary and
expedient to issue $500,000 General Obligation Capital Improvement Plan Refunding Bonds,
Series 2009B (the "Bonds" or individually, a "Bond") pursuant to Minnesota Statutes, Section
475.521 and Chapter 475 to provide funds to acquire the Facility pursuant to a current refunding
of the Prior Bonds; and
2381569v1
,. 777~~~,\7 (/// \1 ~~-(y ~~-7j A TT~~\r T \1 (\ y~-1 71 T {` I( 1T (\
1 V V 1 \ 1, 1. 1 ~._i ( 1 1 `f LJ ~.~~' V L ~J V ~ ~. '3~ l l~ ~J
f~'I%•
Honorable City Council
City of St. Joseph, Minnesota
Dear City Officials:
We understand that you desire to issue $495,000 General Obligation Capital Improvement Plan Refunding Bonds.
Accordingly, we propose as follows:
We agree to purchase $495,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2009B to be
dated September 1, 2009, and to mature December 1, 2010 - 2018. We agree to pay for the Bonds $498,728.85 and
accrued interest to the date of settlement. It is also expressly understood that the Issuer, the City of St. Joseph, will pay
Northland Securities, Inc. an Underwriter's Fee of $11,137.50.
The Bonds are to be payable at Northland Trust Services, Inc., Minneapolis, Minnesota, as fiscal agent, paying agent
and registrar. Interest is to be payable- on June 1, 2010 and semiannually thereafter. The Bonds will have the
following interest rates and will mature on December 1 in the years and amounts as follows:
2010 $50,000 1.10 % 2015 $55,000 3.00
2011 50,000 1.35 2016. 55,000 3.00
2012 55,000 1.70 .20]7 60,000 3.25
2013 55,000 2.00 2018 60,000 3.75
2014 55,000 3.00
Bonds will be Book Entry and in multiples of $5,000. The average interest rate is 2.9136% and the TIC is 2.7384%.
Optional Redemption: All Bonds are without the option of prepayment.
This contract is made for prompt acceptance and subject to the approval of Briggs and Morgan, Professional
Association (Bond Counsel) of St. Paul, Minnesota, as to the legality and regularity of all proceedings taken in the
issuance of the Bonds.
The Issuer agrees to pay the expenses of registering the Bonds and the fee of Bond Counsel, recognized municipal
bond attorneys, in furnishing the necessary proceedings required to authorize the issuance of the Bonds. The Issuer
shall be responsible for paying agent fees on the Refunded Bonds when called and for the publication of the call notice.
Respectfully submitted this 6th day of August, 2009
NORTH S S,
By:
The foregoing proposal was duly accepted by the City Council of St. Joseph Minnesota, at 7 p.m. this 6th day of
August, 2009.
By:
Mayor
Attest:
Administrator -Clerk
Northland Securities, ln~. 45 South 7rh Street, Suite 2000, Minneapolis, MN SJ i02 i ~ ~~~~ 1-300-851-2970 ~~~~ C12-351.-59~~~~ ~~~~~ 612-851.-987
www.northlandsecurities.com
n f ~i nr .IPC
NORTHLAND SECURITIES
Honorable City Council
City of St. Joseph, Minnesota
Dear City Officials:
We understand that you desire to issue $495,000 General Obligation Capital Improvement Plan Refunding Bonds.
Accordingly, we propose as follows:
We agree to purchase $495,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2009B to be
dated September 1, 2009, and to mature December 1, 2010 - 2018. We agree to pay for the Bonds $498,728.85 and
accrued interest to the date of settlement. It is also expressly understood that the Issuer, the City of St. Joseph, will pay
Northland Securities, Inc. an Underwriter's Fee of $11,137.50.
The Bonds are to be payable at Northland Trust Services, Inc., Minneapolis, Minnesota, as fiscal agent, paying agent
and registrar. Interest is to be payable on June 1, 2010 and semiannually thereafter. The Bonds will have the
following interest rates and will mature on December 1 in the years and amounts as follows:
2010 $50,000 1.10 % 2015 $55,000 3.00
2011 50,000 1.35 2016 55,000 3.00
2012 55,000 1.70 2017 60,000 3.25
2013 55,000 2.00 2018 60,000 3.75
2014 55,000 3.00
Bonds will be Book Entry and in multiples of $5,000. The average interest rate is 2.9136% and the TIC is 2.7384%
Optional Redemption: All Bonds are without the option of prepayment.
This contract is made for prompt acceptance and subject to the approval of Briggs and Morgan, Professional
Association (Bond Counsel) of St. Paul, Minnesota, as to the legality and regularity of all proceedings taken in the
issuance of the Bonds.
The Issuer agrees to pay the expenses of registering the Bonds and the fee of Bond Counsel, recognized municipal
bond attorneys, in furnishing the necessary proceedings required to authorize the issuance of the Bonds. The Issuer
shall be responsible for paying agent fees on the Refunded Bonds when called and f e 'cation of the call notice.
Respectfully submitted this 6th day of August, 2009
NORTHLAN SE U E /-'
By:
The foregoing proposal was duly accepted by the City Council of St. Joseph, Minnesota, at 7 this 6th day of
August, 2009.
By:
Mayor
Attest:, :~~ '~/%~^,' ~~'s„ (~~. ~E? ~l
Administfator ~k ~'°~
~.
Northland Securities, Inc. 45 South 7th Street, Suite 2000, Minneapolis, MN 55402 r~u Free 1-500-851-2920 N[a~a 612-851-5900 Fax 612-851-5987
www.northlandsecurities.com
Member FINRA and SIPC